The Food and Beverage Market Entry Handbook: Saudi Arabia

232 Pages·2017·7.85 MB·English

by  Helika Jurgenson

The Food and Beverage
Market Entry Handbook:
Saudi Arabia
a Practical Guide to the Market in Saudi Arabia for European Agri-food
Products and Products with Geographical Indications

July 2017
Prepared by:
EUROPEAN COMMISSION
Consumers, Health, Agriculture and Food Executive Agency
Promotion of Agricultural Products Unit
E-mail: [email protected]
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More information on the European Union is available on the Internet (http://europa.eu).
Luxembourg: Publications Office of the European Union, 2017
PDF/Volume_01 EB-05-17-005-EN-N ISBN 978-92-9200-771-3 DOI 10.2818/282581

© European Union, 2017
Reproduction is authorised provided the source is acknowledged.
Enjoy It’s from Europe – Market Entry Handbook
Table of Contents: How to Use this Handbook
Table of Contents
Table of Contents ............................................................................. 1
List of Acronyms .............................................................................. 5
The Exporter’s Handbook: Saudi Arabia ............................................... 6
How to Use this Handbook .............................................................. 6
The Saudi Market ............................................................................. 8
Saudi Arabia at a Glance ................................................................. 9
Saudi Arabian Food and Beverage Market ........................................ 13
4.2.1 Saudi Arabia F&B Trade Profile ................................................. 15
4.2.2 Retail Overview ...................................................................... 19
4.2.3 Logistics ............................................................................... 22
4.2.4 Distribution ........................................................................... 30
4.2.5 Doing Business ...................................................................... 32
Market Access and Entry ................................................................. 34
Market Strengths, Weaknesses, Opportunities and Threats ................ 34
Cultural Sensitivities .................................................................... 36
5.2.1 Alcohol & Intoxicants .............................................................. 36
5.2.2 Fresh & Processed Meat .......................................................... 37
5.2.3 Price Hikes during Religious Festivals like Ramadan ..................... 37
5.2.4 Rising Health-Consciousness Sets the Trends in Food and Beverage
Sector 37
EU F&B Exports to Saudi Arabia ..................................................... 38
Key Markets ................................................................................ 40
Regulation, Legislation and Administrative Information ..................... 46
5.5.1 Registration of GI ................................................................... 46
5.5.2 GCC Trademark Law ............................................................... 48
5.5.3 Customs Regulations .............................................................. 49
5.5.4 SPS Requirements .................................................................. 53
5.5.5 Labelling Requirements ........................................................... 57
Saudi Arabia and International Trade in F&B .................................... 58
5.6.1 Saudi Arabia at the WTO ......................................................... 59
Saudi Arabia at the GCC 6 ............................................................. 59
5.7.1 GCC Trademark Law ............................................................... 60
5.7.2 Future of GCC 6 ..................................................................... 61
Market Snapshots ........................................................................... 62
Market Snapshot: Baked Goods ..................................................... 63
6.1.1 Consumption ......................................................................... 63
6.1.2 Offer .................................................................................... 65
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6.1.3 Specific Import Requirements .................................................. 70
6.1.4 Distribution ........................................................................... 71
6.1.5 Summary .............................................................................. 71
Market Snapshot: Chocolate .......................................................... 73
6.2.1 Consumption ......................................................................... 73
6.2.2 Offer .................................................................................... 75
6.2.3 Main Competitors ................................................................... 78
6.2.4 Specific Import Requirements .................................................. 78
6.2.5 Distribution ........................................................................... 79
6.2.6 Summary .............................................................................. 80
Market Snapshot: Confectionary Products ....................................... 81
6.3.1 Consumption ......................................................................... 81
6.3.2 Offer .................................................................................... 84
6.3.3 Main Competitors ................................................................... 87
6.3.4 Specific Import Requirements .................................................. 87
6.3.5 Distribution ........................................................................... 88
6.3.6 Summary .............................................................................. 88
Market Snapshot: Dairy Products ................................................... 90
6.4.1 Consumption ......................................................................... 90
6.4.2 Offer .................................................................................... 93
6.4.3 Main Competitors ................................................................... 94
6.4.4 Specific Import Requirements .................................................. 95
6.4.5 Distribution ........................................................................... 96
6.4.6 Summary .............................................................................. 97
Market Snapshot: Drinks .............................................................. 98
6.5.1 Consumption ......................................................................... 98
6.5.2 Offer .................................................................................. 102
6.5.3 Distribution ......................................................................... 106
6.5.4 Summary ............................................................................ 107
Market Snapshot: Fresh Fruits and Vegetables ............................... 109
6.6.1 Consumption ....................................................................... 109
6.6.2 Offer .................................................................................. 114
6.6.3 Main Competitors ................................................................. 116
6.6.4 Specific Import Requirements ................................................ 118
6.6.5 Distribution ......................................................................... 119
6.6.6 Summary ............................................................................ 119
Market Snapshot: Fresh Meats ..................................................... 120
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6.7.1 Consumption ....................................................................... 120
6.7.2 Offer .................................................................................. 124
6.7.3 Main Competitors ................................................................. 126
6.7.4 Specific Import Requirements ................................................ 127
6.7.5 Distribution ......................................................................... 128
6.7.6 Summary ............................................................................ 130
Market Snapshot: Honey, Gum Resins and Plant Products ................ 132
6.8.1 Consumption ....................................................................... 132
6.8.2 Offer .................................................................................. 134
6.8.3 Main Competitors ................................................................. 136
6.8.4 Product Import Requirements ................................................ 137
6.8.5 Distribution ......................................................................... 137
6.8.6 Summary ............................................................................ 138
Market Snapshot: Cotton Plants ................................................... 139
6.9.1 Consumption ....................................................................... 139
6.9.2 Offer .................................................................................. 139
6.9.3 Main Competitors ................................................................. 143
6.9.4 Specific Import Requirements ................................................ 144
6.9.5 Distribution ......................................................................... 144
6.9.6 Summary ............................................................................ 144
Market Snapshot: Olive Oil ....................................................... 145
6.10.1 Consumption .................................................................... 145
6.10.2 Offer ................................................................................ 146
6.10.3 Main Competitors .............................................................. 149
6.10.4 Distribution....................................................................... 150
6.10.5 Summary ......................................................................... 151
Market Snapshot: Processed Cereals .......................................... 152
6.11.1 Consumption .................................................................... 152
6.11.2 Offer ................................................................................ 154
6.11.3 Specific Import Requirements .............................................. 156
6.11.4 Summary ......................................................................... 157
Market Snapshot: Processed Fruits and Vegetables ...................... 158
6.12.1 Consumption .................................................................... 158
6.12.2 Offer ................................................................................ 161
6.12.3 Main Competitors .............................................................. 163
6.12.4 Specific Import Requirements .............................................. 164
6.12.5 Distribution....................................................................... 165
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6.12.6 Summary ......................................................................... 166
Market Snapshot: Processed Meats ............................................ 167
6.13.1 Consumption .................................................................... 167
6.13.2 Offer ................................................................................ 170
6.13.3 Main Competitors .............................................................. 172
6.13.4 Specific Import Requirements .............................................. 173
6.13.5 Distribution....................................................................... 174
6.13.6 Summary ......................................................................... 175
Market Snapshot: Products with Geographical Indication .............. 176
6.14.1 Consumption .................................................................... 176
6.14.2 Offer ................................................................................ 179
6.14.3 Distribution....................................................................... 184
6.14.4 Summary ......................................................................... 186
Communication ............................................................................ 188
Advertising in Saudi Arabia ......................................................... 189
F&B Media in Saudi Arabia .......................................................... 190
Presenting a Product in Saudi Arabia ............................................ 191
7.3.1 Target Audience ................................................................... 193
7.3.2 Communications Campaigns in Saudi Arabia ............................ 194
7.3.3 Promoting your Product ......................................................... 195
DOs and DON’Ts ........................................................................... 197
DO .......................................................................................... 197
DON’T ...................................................................................... 197
Quick Facts ............................................................................... 198
Synopsis ..................................................................................... 201
Conclusion ................................................................................ 204
Support Services Directory ............................................................ 206
Annex I: Registered GI Products ..................................................... 211
Annex II: Professionals Contact Database ........................................ 212
Annex III: Case Study - Investing in Building a Network of Trust is the Key
to Success in Saudi Arabia ..................................................................... 217
Company Profile ..................................................................... 217
Customer Base ....................................................................... 217
Market Opportunities and Marketing Strategy .............................. 217
Challenges in Saudi Arabia ....................................................... 218
Key to Success ....................................................................... 218
Do’s and Don’ts in Saudi Arabia ................................................ 219
Annex IV: Case Study - National Agricultural Development Company ... 220
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List of Acronyms: How to Use this Handbook
Introduction ........................................................................... 220
Successful Products ................................................................. 220
Supply and Distribution Chains ................................................. 222
Marketing Strategy .................................................................. 223
Annex V: List of Tables & Figures .................................................... 227

List of Acronyms
Broadcasting Service of the Kingdom of
BSKSA
Saudi Arabia
CAGR Compound Annual Growth Rate
CMA Capital Markets Authority
DMA Dammam Metropolitan Area
F&B Food and Beverage
FDA Food and Drug Administration
FIA Foreign Investment Act
GAFTA Greater Arab Free Trade Area
GCC Gulf Cooperation Council
GI Geographical Indications
GSFMO Grain Silos and Feed Mills Organisation
GSO Gulf Standardisations Organisation
GSP Generalised System of Preferences
IPR Intellectual Property Rights
KSA Kingdom of Saudi Arabia
MENA Middle East and North Africa
Saudi Arabia Basic Industries
SABIC
Corporation
SAGO Saudi Grain Organisation
SAMA Saudi Arabia Monetary Agency
Saudi Standards, Metrology and Quality
SASO
Organisation
SAVOLA Saudi Vegetable Oil and Ghee Company
SDFA Saudi Food and Drug Authority
SIDF Saudi Industrial Development Fund
SPS Sanitary and Phytosanitary
Trade and Investment Framework
TIFA
Agreement
UAE United Arab Emirates
US United States
WTO World Trade Organisation

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The Exporter’s Handbook: Saudi Arabia: How to Use this Handbook
The Exporter’s Handbook: Saudi Arabia
This Handbook is intended to act as a reference for those agri-food producers
planning for, or in the process of entering the Saudi market. This Handbook
provides step-by-step guidance on the operationalisation of the market in Saudi
Arabia, including relevant information such as analysis of product-specific
markets, market access and market entry procedures - including as applicable at
the bilateral and regional levels - Intellectual Property Rights (IPR) for products
with Geographical Indications (GI), a signposting and referral system providing
useful contacts to professional buyers and strategies for penetrating the Saudi
market.
How to Use this Handbook
The applicability of each section of this Handbook will depend on your stage of
market entry, company profile, product range and existing business strategies.
For those wishing to learn more about the Saudi Arabian food and beverage (F&B
market in general, Sections 4 and 5 provide an overview of the business climate.
These sections include political, geographic, economic and cultural information
relevant to successful market entry and performance. The information contained
within these sections is of a general nature so may not be relevant for those in
the more advanced stages of market entry.
If you are interested in the market, in Section 6, you may find out more
information relevant to your product through the 14 Market Snapshots for selected
products. These sections illustrate the market overview, entry procedures,
sanitary and phytosanitary requirements and more, specific to each of the
following product categories:
1. Baked Goods
2. Chocolate
3. Confectionary
4. Dairy Products
5. Drinks
6. Fresh Fruits and Vegetables
7. Fresh Meats
8. Honey, Gum Resins and Plant Products
9. Live Plants and Cotton
10.Olive Oil
11.Processed Cereals
12.Processed Fruits and Vegetables
13.Processed Meats
14.Products with Geographical Indication
This information will provide more industry-specific intelligence to consider as part
of any market entry or market expansion strategies. The information contained in
this Handbook is a first resource to consult in deciding how to export your product
to the Saudi market and does not constitute legal guidance. Applicable legislation,
regulations and market information are frequently updated or changed in Saudi
Arabia and should be reviewed with a knowledgeable export support service or
import counsellor prior to market entry.
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The Exporter’s Handbook: Saudi Arabia: How to Use this Handbook
If you have already decided to market your product in Saudi Arabia, but need
some assistance getting there, then the detailed information in Sections 7 to 10
can point you in the right way. In Section 7 you will find the necessary information
to build your communication strategy, including statistics on social media usage,
main media channels and the local rules on advertisement Section 8 provides
practical tips and a concise list of recommendations on what to do and what not
to do. The Synopsis in Section 9 presents an overview of the F&B market in Saudi
Arabia through SWOT analysis and 4P Analysis Finally, Section 10 provides a
Support Services Directory which includes a well-informed contact network of
service providers, business facilitation support organisations and business
contacts, which can be vital in entering and building a brand in the Saudi market.

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